15 U.S.C. § 3902 : US Code - Section 3902: Risk retention groups

(a) Exemptions from State laws, rules, regulations, or orders
Except as provided in this section, a risk retention group is
exempt from any State law, rule, regulation, or order to the extent
that such law, rule, regulation, or order would -
(1) make unlawful, or regulate, directly or indirectly, the
operation of a risk retention group except that the jurisdiction
in which it is chartered may regulate the formation and operation
of such a group and any State may require such a group to -
(A) comply with the unfair claim settlement practices law of
the State;
(B) pay, on a nondiscriminatory basis, applicable premium and
other taxes which are levied on admitted insurers and surplus
lines insurers, brokers, or policyholders under the laws of the
State;
(C) participate, on a nondiscriminatory basis, in any
mechanism established or authorized under the law of the State
for the equitable apportionment among insurers of liability
insurance losses and expenses incurred on policies written
through such mechanism;
(D) register with and designate the State insurance
commissioner as its agent solely for the purpose of receiving
service of legal documents or process;
(E) submit to an examination by the State insurance
commissioners in any State in which the group is doing business
to determine the group's financial condition, if -
(i) the commissioner of the jurisdiction in which the group
is chartered has not begun or has refused to initiate an
examination of the group; and
(ii) any such examination shall be coordinated to avoid
unjustified duplication and unjustified repetition;
(F) comply with a lawful order issued -
(i) in a delinquency proceeding commenced by the State
insurance commissioner if there has been a finding of
financial impairment under subparagraph (E); or
(ii) in a voluntary dissolution proceeding;
(G) comply with any State law regarding deceptive, false, or
fraudulent acts or practices, except that if the State seeks an
injunction regarding the conduct described in this
subparagraph, such injunction must be obtained from a court of
competent jurisdiction;
(H) comply with an injunction issued by a court of competent
jurisdiction, upon a petition by the State insurance
commissioner alleging that the group is in hazardous financial
condition or is financially impaired; and
(I) provide the following notice, in 10-point type, in any
insurance policy issued by such group:
"NOTICE
"This policy is issued by your risk retention group. Your risk
retention group may not be subject to all of the insurance laws and
regulations of your State. State insurance insolvency guaranty
funds are not available for your risk retention group."
(2) require or permit a risk retention group to participate in
any insurance insolvency guaranty association to which an insurer
licensed in the State is required to belong;
(3) require any insurance policy issued to a risk retention
group or any member of the group to be countersigned by an
insurance agent or broker residing in that State; or
(4) otherwise, discriminate against a risk retention group or
any of its members, except that nothing in this section shall be
construed to affect the applicability of State laws generally
applicable to persons or corporations.
(b) Scope of exemptions
The exemptions specified in subsection (a) of this section apply
to laws governing the insurance business pertaining to -
(1) liability insurance coverage provided by a risk retention
group for -
(A) such group; or
(B) any person who is a member of such group;
(2) the sale of liability insurance coverage for a risk
retention group; and
(3) the provision of -
(A) insurance related services;
(B) management, operations, and investment activities; or
(C) loss control and claims administration (including loss
control and claims administration services for uninsured risks
retained by any member of such group);
for a risk retention group or any member of such group with
respect to liability for which the group provides insurance.
(c) Licensing of agents or brokers for risk retention groups
A State may require that a person acting, or offering to act, as
an agent or broker for a risk retention group obtain a license from
that State, except that a State may not impose any qualification or
requirement which discriminates against a nonresident agent or
broker.
(d) Documents for submission to State insurance commissioners
Each risk retention group shall submit -
(1) to the insurance commissioner of the State in which it is
chartered -
(A) before it may offer insurance in any State, a plan of
operation or a feasibility study which includes the coverages,
deductibles, coverage limits, rates, and rating classification
systems for each line of insurance the group intends to offer;
and
(B) revisions of such plan or study if the group intends to
offer any additional lines of liability insurance;
(2) to the insurance commissioner of each State in which it
intends to do business, before it may offer insurance in such
State -
(A) a copy of such plan or study (which shall include the
name of the State in which it is chartered and its principal
place of business); and
(B) a copy of any revisions to such plan or study, as
provided in paragraph (1)(B) (which shall include any change in
the designation of the State in which it is chartered); and
(3) to the insurance commissioner of each State in which it is
doing business, a copy of the group's annual financial statement
submitted to the State in which the group is chartered as an
insurance company, which statement shall be certified by an
independent public accountant and contain a statement of opinion
on loss and loss adjustment expense reserves made by -
(A) a member of the American Academy of Actuaries, or
(B) a qualified loss reserve specialist.
(e) Power of courts to enjoin conduct
Nothing in this section shall be construed to affect the
authority of any Federal or State court to enjoin -
(1) the solicitation or sale of insurance by a risk retention
group to any person who is not eligible for membership in such
group; or
(2) the solicitation or sale of insurance by, or operation of,
a risk retention group that is in hazardous financial condition
or is financially impaired.
(f) State powers to enforce State laws
(1) Subject to the provisions of subsection (a)(1)(G) of this
section (relating to injunctions) and paragraph (2), nothing in
this chapter shall be construed to affect the authority of any
State to make use of any of its powers to enforce the laws of such
State with respect to which a risk retention group is not exempt
under this chapter.
(2) If a State seeks an injunction regarding the conduct
described in paragraphs (1) and (2) of subsection (e) of this
section, such injunction must be obtained from a Federal or State
court of competent jurisdiction.
(g) States' authority to sue
Nothing in this chapter shall affect the authority of any State
to bring an action in any Federal or State court.
(h) State authority to regulate or prohibit ownership interests in
risk retention groups
Nothing in this chapter shall be construed to affect the
authority of any State to regulate or prohibit the ownership
interest in a risk retention group by an insurance company in that
State, other than in the case of ownership interest in a risk
retention group whose members are insurance companies.